Lennar Acquires $740M Of Distressed Assets

Posted by Orb Staff on October 01, 2010 No Comments
Categories : Commercial Mortgage

Lennar Corp. has completed the acquisitions of approximately $740 million of distressed real estate assets, in separate transactions, from three large financial institutions. The acquired assets include loans with a total unpaid principal balance of approximately $529 million and real estate owned properties (REOs) with an appraised value of approximately $211 million.

The real estate assets in these transactions were purchased at a discount and paid for with a combination of cash and senior unsecured financing provided by one of the selling financial institutions, Lennar says.

The combined portfolio includes approximately 397 loans and 306 properties. The assets consist primarily of nonperforming residential and commercial acquisition, development and construction loans and REOs relating to land, lots, and single-family and multifamily residential communities at varying stages of completion.

The acquired assets are located in 17 states, primarily in the Mid-Atlantic and Southeast regions. In the combined portfolio, 65% of the assets are residential and 35% are commercial. Lennar's Rialto Investments segment will be responsible for the oversight and day-to-day management and workout of the combined portfolio.

SOURCE: Lennar Corp.

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